Financials
Quarterly Report For The Financial Period Ended 31 December 2011
Financials Archive
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For the Fourth Quarter Ended 31 Dec 2011
For the Fourth Quarter Ended 31 Dec 2011
(a) 3 Months Quarter 2011 vs. 3 Months Quarter 2010
The Group's total revenue increased5% compared to the corresponding quarter of preceding year. The increase was mainly due to increase of industrial machinery sales 21% even though offset by 39% decrease in the seedlings sales.
The Group achieved profits before taxation of RM0.5 million in 2011, comparing to RM1.3 millionin 2010.The profit attained during the current quarter of 2011 was mainly contributed by the industrial machine and engineering sector. The oil palm seedling sector suffered RM0.4 million losses in 2011 due to weaker sales comparing to RM1.3 million profits in 2010. The Group suffered RM0.4 million foreign exchange losses comparing to RM0.5 million gains in 2010 due to Ringgit Malaysia strengthened slightly against Indonesian Rupiah and China Renminbi.
(b) 12 Months Quarter 2011 vs. 12 Months Quarter 2010
The Group's revenue increased 27% principally attributed to the 31% increase in the sales of industrial machine. The oil palm seedlings sales decreased 17% due to the general reduction in new deforestation projects in Indonesia.
The Group attained RM3.1 million profits before tax contradicting to RM0.1 million losses in 2010.The profit in 2011 was mainly resulted from increase in industrial machinery and engineering sales and recognition of foreign exchange gain amounting to RM1.2 million.During 2011, Ringgit was weaker against US Dollar, China Renminbi and Indonesian Rupiah.
Commentary on ProspectsDespite the recent economic crisis in a few European countries and political instability in Middle East which had drastically affected the global economy recovery, the demand for industrial processing machinery and production lines manufactured by the Group is still looking positive as the prices of agricultural commodities such as rubber, cocoa and palm oil are up-surging which have propelled the key players in these industries throughout the world to invest more on their new or replacement of their existing industrial processing plant and machinery. This continued expansion in demand both locally and overseas especially for African and ASEAN countries will auger well for the Group's businesses in the short run.
The proliferation of bio-fuel projects in developed and developing countries is expecting to indirectly boost the demand for oil palm seedlings. The Group will be expecting further positive growth in revenue and profits from its Indonesian subsidiary.